Buying Property in Bulgaria: A Comprehensive Guide

Bulgaria, with its rich history and stunning natural beauty, is a captivating Balkan country that attracts many visitors. From its mineral springs and ideal landscapes for hiking and winter sports to its historical buildings, city parks, and vibrant squares, Bulgaria is an appealing choice both for living and for investment. In this comprehensive guide, we will explore everything you need to know about buying property in Bulgaria, from the legal procedures to property prices, and provide you with all the relevant information to help you make an informed decision.

Overview of Buying Property in Bulgaria for Foreigners

Foreigners are allowed to buy property in Bulgaria, but there are some restrictions. Citizens of the European Union (EU) and the European Economic Area (EEA) enjoy certain advantages when buying property in Bulgaria compared to citizens of non-EU countries. EU citizens can purchase a property, including the land it is built on, without any restrictions. On the other hand, non-EU citizens, such as those from Turkey, can only acquire ownership of the building itself but not the land. For example, you can own an apartment, but the ownership of the land beneath it remains restricted.

If EU citizens wish to stay in Bulgaria for more than three months, they must apply for a residence permit by submitting their application to the Directorate of Migration at the Ministry of Interior. The “golden visa” program, which aimed to provide permanent residency to foreigners through real estate investments, has been discontinued due to lack of interest.

Documents Required for Buying Property in Bulgaria

To successfully purchase property in Bulgaria, several documents are required. Below is a list of necessary documents to help you understand the requirements:

• Title Deed: A document proving ownership of the property.
• Property Tax Declaration: A tax declaration related to the property.
• Marriage Certificate and Inheritance Documents: If applicable, a marriage certificate and a document that shows the property is inherited.
• Central Property Registry Documents: Documents obtained from the central property registry.
• Identification Documents: Passport or ID card copies of both the buyer and the seller.
• Notarized Power of Attorney: If a third party is representing the buyer or seller, a notarized power of attorney is required.
• Pre-Sale Agreement: An agreement signed between the buyer and seller outlining the terms of the sale.

Step-by-Step Process of Buying a Property in Bulgaria

Purchasing a property in Bulgaria requires following a structured series of steps to ensure the transaction is completed smoothly and legally. Here is the step-by-step guide:

1. Finding the Right Property: You can start searching for a property on the internet or seek assistance from a real estate agent to find the ideal home.
2. Pre-Sale Agreement: Once you identify a property and agree on the terms, a pre-sale agreement is signed with the property owner. This document should include details such as the agreed price, withdrawal conditions, and the amount of any initial deposit.
3. Initial Payment: Many real estate offices in Bulgaria require a deposit before finalizing the sale. It is essential to be careful and only proceed with the payment once you are fully confident in your decision.
4. Notary Procedures: Once all necessary documents are gathered, visit a notary to finalize the sales transaction by signing the contract.
5. Land Registry Registration: After the notary procedures, you will need to register your property at the local Land Registry Office to complete the ownership process. You will receive a card containing the EIK number, which you will use for all future dealings regarding the property.
6. Property Tax Declaration: Visit the municipal office where the property is located to declare the property for tax purposes and complete your tax payments.

It is crucial to work with a lawyer during the purchasing process to ensure that all legal requirements are met, and that the documents are accurate. Additionally, to avoid scams, take your time, conduct thorough research, and refrain from making any immediate payments without due diligence.

Using a Mortgage to Buy Property in Bulgaria

It is possible to finance your property purchase in Bulgaria using a mortgage loan, even if you are not an EU citizen. However, there are certain considerations that foreigners need to keep in mind when applying for a mortgage:

• Loan-to-Value Ratio: The mortgage cannot exceed 85% of the property’s value.
• Purpose of the Loan: The mortgage can be used for purchasing a new home, construction, repairs, or renovation.
• Loan Term: Mortgages are available for up to 35 years.

Foreigners seeking mortgage loans may face higher interest rates and may be required to make a down payment of 30% to 40%. Below is a list of documents typically required for a mortgage application:

• Application Form
• Employment Certificate / Tax Return
• Salary Slip
• Income Declaration: Bank statements from the last six months.
• Copy of ID or Passport
• Marriage Certificate
• Credit History Document
• Pre-Sale Agreement for Property
• Valuation Report
• Property Documents

In addition to the mortgage itself, buyers should consider other costs such as notary fees, registration fees, real estate agent commissions, and attorney fees. If the seller is a company, Value-Added Tax (VAT) may also apply.

Residence Permits for Property Owners in Bulgaria

EU citizens who own property in Bulgaria must obtain a residence permit and a residency card if they intend to stay longer than three months. For non-EU citizens, purchasing a property worth at least 600,000 BGN can lead to a one-year residence permit. After maintaining this investment for five years, permanent residence may be obtained. However, this program has been discontinued, as Bulgaria aims to promote business investment and job creation over real estate investment.

Property Prices in Bulgaria

Bulgaria is one of the most attractive countries in Europe when it comes to real estate prices. Property prices vary significantly between different cities, particularly in popular areas such as Sofia, Plovdiv, and Varna. Below is an overview of the average price per square meter in major Bulgarian cities:

These figures are derived from “Price Stats” data provided by the Bulgarian real estate site imoti.net. Note that prices can vary greatly not only from city to city but also within different neighborhoods of the same city.

Apartments for Sale in Kardzhali

Kardzhali is one of the cities in Bulgaria with a significant Turkish population. It combines both historical and natural beauty, making it a popular destination for tourists. Here is an overview of some apartments currently for sale in Kardzhali:

Conclusion and Recommendations

Buying property in Bulgaria can be an excellent investment opportunity as well as a chance to enjoy a higher quality of life. However, it is essential to be fully aware of the legal requirements and processes involved, especially for foreigners. Engaging the services of a professional real estate consultant and a lawyer can significantly streamline the process and ensure that everything is in compliance with Bulgarian law.

Take your time to research and compare different areas and cities, such as Sofia, Varna, and Plovdiv, to find the best property for your needs. This way, you can find the perfect home or investment opportunity while making the most of Bulgaria’s real estate market.

If you are considering investing in Bulgarian property, start exploring your options today, and take the first step towards finding your dream home or the ideal investment in this beautiful country.